Malta Alternative Investment Funds – Post AIFMD Malta has establishing itself as a reputable and attractive jurisdiction for funds, both in the EU and globally. Being an EU member state, Malta also inevitably follows EU directives regarding the regulation of funds which henceforth guarantees high standard levels. In this regard Malta offers various fund structures of various degrees of complexity and in line with AIFMD requirements. Why Malta? Malta is a full EU onshore jurisdiction, equipped with a highly reputable regulator (the MFSA); Maltese Fund structures allow for the incorporation of specialised funds, which funds are ideal for de minimis fund managers while also offering other fund structures for fully compliant AIFMD fund managers. Malta offers the possibility of tax refunds which generally lower the effective corporate tax to only 5%, which is the lowest in Europe;
Malta’s Tax Treatment specific to Funds Maltese licensed funds enjoy a 100% tax exemption on income other than income derived from immovable property situated in Malta as long as less than 85% of the fund’s total assets value is made up of assets situated in Malta; If the value of assets situated in Malta exceeds 85% of the value of the fund’s total assets, the fund will incur a withholding tax on certain investment income at either 10% or 15%; No further tax is withheld on the distribution of dividends from a Maltese PIF to a non-resident investor; No tax is levied on any gains derived by a non-resident investor from transferring, cancelling or liquidating his units in the fund; No stamp duty levied on share issues or transfers; and Activities pursuant to funds such as subscriptions to units and fund management/administration services are also exempt from VAT.
Malta’s network of double taxation treaties is already highly dense, with many others in the pipeline; and Malta offers very competitive prices for setting up Funds structures.
© 2014 KSi Malta, a member firm of the KS International an association of independent member firms. All rights reserved. No one should act or rely on information prior to seeking appropriate professional advice on his/her specific situation.
Maltese Fund Structures Maltese funds can be encompassed under numerous structures. A limited liability company which can be either open ended (SICAV) or close ended (INVCO) Contractual Fund A Partnership A Trust The Maltese jurisdiction also allows for internal or external management and administration of Funds Maltese Funds The Maltese Jurisdiction offers a great deal of flexibility for Fund Managers by providing a fully compliant AIF structure for managers wishing to avail themselves of the European Passport offered under the AIFMD and by also providing fund structures for de minimis fund managers through the Professional investor fund (PIF) regime.
All 3 types of categories need to adhere to minimum subscription (entry) thresholds, and unlike PIFs targeting experienced investors, PIFs targeting qualifying and extraordinary investors are restricted to maintain a minimum net asset value. In addition, unlike PIFs targeting experienced investors, PIFs targeting qualifying and extraordinary investors face no borrowing limits. Umbrella Fund or a Multi-Class Fund Maltese Funds may be constituted as an umbrella fund or a multi-class fund. An umbrella fund is a structure which includes sub-funds whereby the assets and liabilities of each sub-fund can be structured as a patrimony separate from the assets and liabilities of each other sub-fund. Multi-Class structures would have multiple sub-funds, each having different characteristics but not a separate patrimony. How can we help you? In collaboration with our fully licensed partners, we can offer you with the following services: i.
Assist you in finding a plug-in ready Umbrella Platform, which is fast, costly, independent and highly reliable;
What is a PIF? A PIF is the type of non-retail fund under Maltese law which offer great flexibility and can be used as Hedge Funds, Private Equity Funds and Property Funds. Such funds are generally designed to attract high net worth investors as they offer absolute returns with reduced regulations and supervision.
ii.
Assist you in setting-up any Fund structure;
iii.
Assist you in finding investment management services;
iv.
PIFs are generally established as investment companies which could be open-ended (SICAVs) or close-ended (INVCOs). It is also possible for funds to be established as limited partnerships or unit trusts.
Assist you in finding the best Administration Services providers;
v.
Put you in contact with highly reputable Custodians;
vi.
Act as Fund Auditors;
PIFs may be of 3 types:
vii.
Offer you tax compliance and advisory services.
PIFs promoted to experienced investors; PIFs promoted to qualifying investors; and PIFs promoted to extraordinary investors.
Contact us
Our Office
Bernard C. Gauci Senior Advisor bgauci@ksimalta.com
Villa Gauci Mdina Road Balzan BZN 9031 Malta Tel: (+356) 21226176 Fax: (+356) 21226019
Dr Josef Cachia Legal Advisor jcachia@ksimalta.com
www.ksimalta.com
A member of KS International
© 2014 KSi Malta, a member firm of the KS International an association of independent member firms. All rights reserved. No one should act or rely on information prior to seeking appropriate professional advice on his/her specific situation.